Increasing turnover for Vietnamese handicraft exports

Vietnamese handicraft exports aim to achieve the turnover of $4 billion by 2025. However, this figure remains relatively modest in comparison with competitors, such as China and India.

Vietnam is one of the countries with significant potential in exporting handicraft products. Currently, Vietnam boasts more than 5,400 traditional craft villages. Accordingly, the total revenue reached approximately VND 75 trillion.

Vietnamese handicraft exports have now reached to 163 countries and territories. The export turnover of Vietnam’s handicrafts increased from $1.62 billion in 2015 to $2.23 billion in 2019.

According to a statistics, the export turnover of Vietnamese handicrafts was approximately $3.5 billion in 2023. Vietnam aims to achieve an export turnover of $4 billion by 2025.

Mr. Moc, director of an exporting company of handicraft products, stated that the opportunities for Vietnam’s handicraft sector in the coming period are significant. Notable, there are more international businesses, which are reducing imports from China. In addition, the rapid growth of cross-border e-commerce platforms is creating opportunities for Vietnamese enterprises to engage in B2C trade with end consumers worldwide.

Ms. My, Representative of Amazon’s e-commerce platform has agreed with this viewpoint. She shared that the import rate of interior and exterior products and handicrafts is experiencing significant growth, particularly in the U.S. market. Therefore, Amazon is implementing various programs to support Vietnamese businesses in exporting to this country.

“Examples include providing tools to help businesses research the market, consumer behavior, and demand. We also have specific reports on markets and products, and hold sessions to share insights with businesses. All of these aimed at helping this industry tap into the market in the best possible way,” Ms. My shared.

Mr. Moc also says that the price competitiveness between Vietnamese handicraft products and those from China is still quite distant. The reason is that Vietnamese businesses import raw materials in large quantities but lack the ability to save costs in the supply chain, which drives product prices higher.

Meanwhile, existing raw material regions in Vietnam only develop seasonally. During harvest time, both Vietnamese and Chinese businesses are in a competitive situation, trying to buy and sell the same materials.

Therefore, Mr. Moc suggests that the solution for Vietnamese businesses is to seek out additional sources of supply. Another solution is to stabilize growing regions and enhance post-harvest processing capabilities. When the demand for rattan and sedge surged during the Covid-19 period, with materials becoming hard to find, his company continually searched for alternative plant sources.

“Raw materials like sedge have a stable supply but are hard to compete with in terms of price. Also, banana plants have great potential but are not yet suitable for the handicraft industry. For rattan, large-scale natural rattan cultivation projects are almost non-existent,” Mr. Moc shared.

Another company leader shared that sedge is a wild grass that grows abundantly in marshy areas, particularly in the Dong Thap Muoi region and surrounding areas. In recent years, as environmentally friendly lifestyles have gained popularity, there has been increasing attention to handicraft products, raising their value. Sedge, once seen as just a raw material, has now found a new role.

“From the sedge straw project, the company continued to develop a line of products such as bags, trays, and baskets made from sedge. Initially, these products were aimed at optimizing the raw material used in producing sedge straws. Over time, handicraft products gained customer affection and began to conquer international markets,” the leader said.

Vietnamese source: https://www.tinnhanhchungkhoan.vn/gia-tang-kim-ngach-xuat-khau-cho-hang-thu-cong-my-nghe-post357749.html